SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   Form 10-QSB

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(Mark one)

[X] Quarterly Report Under Section 13 or 15(d) of The Securities Exchange
    Act of 1934

    For the quarterly period ended July 31, 2006

[ ] Transition Report Under Section 13 or 15(d) of The Securities Exchange
    Act of 1934

    For the transition period from ______________ to _____________

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                        Commission File Number: 000-30071


                       KIK Technology International, Inc.
        (Exact name of small business issuer as specified in its charter)

      California                                                91-2021602
(State of incorporation)                                (IRS Employer ID Number)

                      590 Airport Road, Oceanside CA 92054
                    (Address of principal executive offices)

                                 (760) 967-2777
                           (Issuer's telephone number)

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Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. YES [X] NO [ ]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act): YES [ ] NO [X]

State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: August 22, 2006: 25,321,865

Transitional Small Business Disclosure Format (check one): YES [ ] NO [X]
<PAGE>
                       KIK TECHNOLOGY INTERNATIONAL, INC.

                 Form 10-QSB for the Quarter ended July 31, 2006

                                Table of Contents


                                                                            Page
                                                                            ----
PART I - FINANCIAL INFORMATION

   Item 1  Financial Statements                                               3

   Item 2  Management's Discussion and Analysis or Plan of Operation         17

   Item 3  Controls and Procedures                                           19


PART II - OTHER INFORMATION

   Item 1  Legal Proceedings                                                 20

   Item 2  Unregistered Sales of Equity Securities and Use of Proceeds       20

   Item 3  Defaults Upon Senior Securities                                   20

   Item 4  Submission of Matters to a Vote of Security Holders               20

   Item 5  Other Information                                                 20

   Item 6  Exhibits                                                          20

SIGNATURES                                                                   20

                                       2
<PAGE>
                                     PART I

ITEM 1 - FINANCIAL STATEMENTS

                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                             July 31, 2006 and 2005

                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                          July 31,              July 31,
                                                                            2006                  2005
                                                                         -----------           -----------
<S>                                                                      <C>                   <C>
                                     ASSETS
CURRENT ASSETS
   Cash on hand and in bank                                              $    27,724           $    27,723
   Accounts receivable
     Trade, net of allowance for doubtful accounts
       of approximately $1,016 and $13,686, respectively                     327,075               228,861
     Other                                                                    11,214                 9,078
   Inventories                                                               196,555               324,790
                                                                         -----------           -----------
      TOTAL CURRENT ASSETS                                                   562,568               590,452
                                                                         -----------           -----------
PROPERTY AND EQUIPMENT - AT COST,
 NET OF ACCUMULATED DEPRECIATION                                              95,636               116,030
                                                                         -----------           -----------
OTHER ASSETS
   Funds held in trust by officer                                             53,400                53,400
   Refundable deposits                                                         4,800                 4,800
                                                                         -----------           -----------
      TOTAL OTHER ASSETS                                                      58,200                58,200
                                                                         -----------           -----------

TOTAL ASSETS                                                             $   716,404           $   764,682
                                                                         ===========           ===========

                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
   Notes payable to investors                                            $    68,000           $    49,000
   Current maturity of capital lease payable                                   2,934                 4,667
   Accounts payable - trade                                                  515,661               459,591
   Other accrued expenses                                                     45,475                39,545
   Management fee payable to majority shareholder                            420,000               300,000
   Advances from majority shareholder                                        116,000                16,000
                                                                         -----------           -----------
      TOTAL CURRENT LIABILITIES                                            1,168,070               868,803
                                                                         -----------           -----------
LONG-TERM DEBT
   Notes payable to investors, net of current maturities                          --                19,000
   Capital lease payable, net of current maturities                               --                 3,439
                                                                         -----------           -----------
      TOTAL LIABILITIES                                                    1,168,070               891,242
                                                                         -----------           -----------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT)
   Common stock - $0.001 par value
     100,000,000 shares authorized
     25,321,865 and 25,171,865 shares issued and outstanding                  25,322                25,172
   Additional paid-in capital                                              5,158,273             5,152,423
   Accumulated deficit                                                    (5,635,261)           (5,304,155)
                                                                         -----------           -----------
      TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                                  (451,666)             (126,560)
                                                                         -----------           -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                     $   716,404           $   764,682
                                                                         ===========           ===========
</TABLE>

   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                       3
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                Six and Three months ended July 31, 2006 and 2005

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                  Six months        Six months       Three months      Three months
                                                    ended             ended             ended             ended
                                                   July 31,          July 31,          July 31,          July 31,
                                                     2006              2005              2006              2005
                                                  -----------       -----------       -----------       -----------
<S>                                               <C>               <C>               <C>               <C>
REVENUES - net of returns and allowances          $ 1,174,920       $   916,512       $   578,076       $   541,296
COST OF SALES                                        (961,565)         (768,082)         (508,262)         (393,443)
                                                  -----------       -----------       -----------       -----------

GROSS PROFIT                                          213,355           148,430            69,814           147,853
                                                  -----------       -----------       -----------       -----------

OPERATING EXPENSES
   Selling, general and
     administrative expenses                          306,695           290,162           155,686           143,289
                                                  -----------       -----------       -----------       -----------

LOSS FROM OPERATIONS                                  (93,340)         (141,732)          (85,872)            4,564

OTHER INCOME
   Interest and other income (expense) - net           (1,416)           (3,205)             (455)           (1,357)
                                                  -----------       -----------       -----------       -----------

LOSS BEFORE PROVISION FOR INCOME TAXES                (94,756)         (144,937)          (86,327)            3,207

PROVISION FOR INCOME TAXES                                 --                --                --                --
                                                  -----------       -----------       -----------       -----------

NET LOSS                                              (94,756)         (144,937)          (86,327)            3,207

OTHER COMPREHENSIVE INCOME                                 --                --                --                --
                                                  -----------       -----------       -----------       -----------

COMPREHENSIVE LOSS                                $   (94,756)      $  (144,937)      $   (86,327)      $     3,207
                                                  ===========       ===========       ===========       ===========
Netloss per weighted-average share of
 common stock outstanding, calculated on
 Net Loss - basic and fully diluted                       nil       $     (0.01)              nil               nil
                                                  ===========       ===========       ===========       ===========
Weighted-average number of shares
   of common stock outstanding                     25,172,694        25,171,865        25,173,495        25,171,865
                                                  ===========       ===========       ===========       ===========
</TABLE>

   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                       4
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     Six months ended July 31, 2006 and 2005

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                   Six months         Six months
                                                                     ended               ended
                                                                    July 31,            July 31,
                                                                     2006                2005
                                                                   ---------           ---------
<S>                                                                <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net loss for the period                                         $ (94,756)          $(144,937)
   Adjustments to reconcile net loss to net cash
    provided by operating activities
      Depreciation and amortization                                   15,251              15,490
      Consulting fees paid with common stock                           6,000                  --
      (Increase) Decrease in
        Accounts receivable - trade and other                       (163,170)             75,248
        Inventory                                                     18,874             (71,356)
        Prepaid expenses and other                                       223                 384
      Increase (Decrease) in
        Accounts payable                                             131,925              37,786
        Other accrued expenses                                         2,197                (217)
        Accrued management fees to parent company                     60,000              60,000
                                                                   ---------           ---------
NET CASH USED IN OPERATING ACTIVITIES                                (23,456)            (27,602)
                                                                   ---------           ---------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchase of property and equipment                                 (7,003)             (2,380)
                                                                   ---------           ---------
NET CASH USED IN INVESTING ACTIVITIES                                 (7,003)             (2,380)
                                                                   ---------           ---------
CASH FLOWS FROM FINANCING ACTIVITIES
   Advances from majority shareholder                                 50,000                  --
   Payments on long-term capital lease                                (2,008)             (2,200)
                                                                   ---------           ---------
NET CASH USED IN FINANCING ACTIVITIES                                 47,992              (2,200)
                                                                   ---------           ---------

INCREASE (DECREASE) IN CASH                                           17,533             (32,182)
Cash at beginning of period                                           10,191              59,905
                                                                   ---------           ---------

CASH AT END OF PERIOD                                              $  27,724           $  27,723
                                                                   =========           =========
SUPPLEMENTAL DISCLOSURE OF INTEREST AND INCOME TAXES PAID
   Interest paid for the period                                    $   2,076           $   2,277
                                                                   =========           =========
   Income taxes paid for the period                                $      --           $      --
                                                                   =========           =========
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
 FINANCING ACTIVITIES                                              $      --           $      --
                                                                   =========           =========
</TABLE>

   The financial information presented herein has been prepared by management
           without audit by independent certified public accountants.
                 The accompanying notes are an integral part of
                    these consolidated financial statements.

                                       5
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A - ORGANIZATION AND DESCRIPTION OF BUSINESS

KIK Technology  International,  Inc. (KTII) was incorporated on February 1, 2000
under   the  laws  of  the   State   of   California   as   Russian-Imports.com.
Russian-Imports.com  was  initially  founded to develop an  internet  e-commerce
website which would sell handmade  lacquer  boxes,  Matroshka  dolls and crystal
imported from Russia.  This business plan was  unsuccessful  and,  subsequently,
terminated.  On September 4, 2001,  KTII (formerly  Russian-Imports.com)  issued
16,700,000  shares  of  restricted,   unregistered  common  stock  to  KIK  Tire
Technologies,  Inc. (a publicly-owned Canadian corporation) (KTTI) for 100.0% of
the  issued  and  outstanding  stock of KIK  Technology,  Inc.  (a  wholly-owned
subsidiary of KTTI). By virtue of this transaction,  KIK Technology, Inc. became
a  wholly-owned  subsidiary  of  KTII  and  KTTI  became  an  approximate  73.6%
shareholder  in KTII.  Concurrent  with  this  transaction,  Russian-Imports.com
changed it's corporate name to KIK Technologies International, Inc.

KIK  Technology,  Inc (KTI) was  incorporated in June 1988 under the laws of the
State of California.  KTI manufactures and markets an extensive and high quality
line of off-highway micro-cellular polyurethane tires for the healthcare,  light
industrial,  lawn and garden and  recreational  industries.  KTI operates from a
sole manufacturing plant and marketing offices located in Oceanside, CA.

The Company's  principal raw  materials are produced from  petroleum  feedstocks
and,  therefore,  are subject to disruption and price  variances  related to the
global availability of crude oil.

NOTE B - PREPARATION OF FINANCIAL STATEMENTS

The  Company  follows  the  accrual  basis  of  accounting  in  accordance  with
accounting principles generally accepted in the United States of America and has
adopted a year-end of January 31.

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting period. Actual results could differ from those estimates.

Management further acknowledges that it is solely responsible for adopting sound
accounting  practices,   establishing  and  maintaining  a  system  of  internal
accounting  control and preventing and detecting  fraud. The Company's system of
internal  accounting  control is designed to assure,  among other items, that 1)
recorded  transactions  are valid; 2) valid  transactions  are recorded;  and 3)
transactions  are  recorded in the proper  period in a timely  manner to produce
financial  statements which present fairly the financial  condition,  results of
operations  and cash  flows of the  Company  for the  respective  periods  being
presented

During interim periods, the Company follows the accounting policies set forth in
its annual  audited  financial  statements  filed with the U. S.  Securities and
Exchange  Commission  on its  Annual  Report on Form  10-KSB  for the year ended
January 31, 2006.  The  information  presented  within these  interim  financial
statements  may not  include all  disclosures  required  by  generally  accepted
accounting  principles  and the  users of  financial  information  provided  for
interim periods should refer to the annual  financial  information and footnotes
when reviewing the interim financial results presented herein.

In the opinion of management,  the accompanying  interim  financial  statements,
prepared in  accordance  with the U. S.  Securities  and  Exchange  Commission's
instructions   for  Form  10-QSB,   are   unaudited  and  contain  all  material
adjustments,  consisting  only of  normal  recurring  adjustments  necessary  to
present fairly the financial condition,  results of operations and cash flows of
the Company for the respective  interim  periods  presented.  The current period
results of operations are not necessarily indicative of results which ultimately
will be reported for the full fiscal year ending January 31, 2007.

For  segment  reporting  purposes,  the Company  operated  in only one  industry
segment during the periods represented in the accompanying  financial statements
and makes all  operating  decisions and  allocates  resources  based on the best
benefit to the Company as a whole.

                                       6
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE B - PREPARATION OF FINANCIAL STATEMENTS - CONTINUED

These  financial  statements  reflect  the books and  records of KIK  Technology
International,  Inc. (KTII) and KIK Technology, Inc. (KTI) as of and for the six
and three months  ended July 31, 2006 and 2005,  respectively.  All  significant
intercompany   transactions   have  been   eliminated  in   consolidation.   The
consolidated entities are referred to as Company.

NOTE C - GOING CONCERN UNCERTAINTY

The Company's  principal raw  materials are produced from  petroleum  feedstocks
and,  therefore,  are subject to disruption and price  variances  related to the
global availability of crude oil.

In prior years,  a significant  supplier of these raw materials was also a major
customer  for  the  Company's  products.   The  Company's  sales  side  of  this
relationship  began to  dissolve  during the year  ended  January  31,  2005 and
further diminished significantly in the year ended January 31, 2006.

In the event of any disruption in the  availability of raw materials or a market
for the Company's products,  as occurred during the year ended January 31, 2006,
the Company will experience a negative economic impact.

The  Company  has  developed  additional  sources  of  supply  of  it's  key raw
materials; however, still experiences fluctuations in pricing due to the current
world market  conditions  for crude oil.  Management is seeking other avenues of
distribution  of the  Company's  products  to  consumers.  Management  is of the
opinion that no  interruption  of either raw  materials  or product  demand will
occur.

The  Company's  continued  existence is  dependent  upon its ability to generate
sufficient cash flows from operations to support its daily operations as well as
provide sufficient resources to retire existing liabilities and obligations on a
timely basis.

The Company  anticipates  that  additional  working capital will be necessary to
support and preserve the integrity of the corporate entity. However, there is no
assurance  that the Company will be able to obtain  additional  funding  through
either bank lines-of-credit or the sale of additional equity securities or, that
such funding, if available, will be obtained on terms favorable to or affordable
by the Company.

If no additional  operating  capital is received  during the next twelve months,
the  Company  will be forced  to rely on  existing  cash in the  bank,  the cash
generated  from  operating  activities  and/or  additional  funds  loaned by the
Company's  majority parent to preserve the integrity of the corporate  entity at
this  time.  In the  event,  the  Company  is unable to  acquire  advances  from
management and/or  significant  stockholders,  the Company's ongoing  operations
would be  negatively  impacted to the point that all  operating  activities  are
ceased.

While the Company is of the opinion that good faith  estimates of the  Company's
ability to secure additional  capital in the future to reach our goals have been
made, there is no guarantee that the Company will receive  sufficient funding to
sustain operations or implement any future business plan steps.

NOTE D - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. CASH AND CASH EQUIVALENTS

     For  Statement of Cash Flows  purposes,  the Company  considers all cash on
     hand  and  in  banks,  certificates  of  deposit  and  other  highly-liquid
     investments with maturities of three months or less, when purchased,  to be
     cash and cash equivalents.

     Cash  overdraft  positions may occur from time to time due to the timing of
     making bank deposits and releasing checks, in accordance with the Company's
     cash management policies.

                                       7
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE D - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

2. ACCOUNTS RECEIVABLE AND REVENUE RECOGNITION

     In the normal course of business,  the Company extends  unsecured credit to
     virtually  all of its  customers  which are located  throughout  the United
     States  and are  principally  concentrated  in the  midwest  region  of the
     country.  Depending upon management's  assessment of  creditworthiness  and
     order  size,  certain  shipments  are  made on  "COD"  terms  using  common
     carriers.  Because of the credit risk involved,  management has provided an
     allowance for doubtful accounts which reflects its opinion of amounts which
     will   eventually   become   uncollectible.   In  the  event  of   complete
     non-performance, the maximum exposure to the Company is the recorded amount
     of trade  accounts  receivable  shown on the  balance  sheet at the date of
     non-performance.

     The Company  recognizes revenue from the sale of tires and accessories upon
     shipment to, or receipt by customers,  depending upon contractual terms and
     when there is no significant  uncertainty regarding the consideration to be
     received and the associated costs to be incurred. Additionally, the Company
     recognizes   reductions  of  recorded  revenue  for  product  returns  from
     unsatisfied customers and other billing adjustments or corrections,  at the
     point that the  returned  products  are received by the Company or upon the
     completion of negotiations between the Company and it's customer.

3.   INVENTORY

     Inventory consists of raw materials,  principally chemical feedstocks,  and
     finished  goods,  principally  tires and  accessories  manufactured  by the
     Company and other minor  miscellaneous  items  purchased  from  third-party
     vendors for resale as a component of the Company's products.

     Inventory is valued at the lower of cost or market value, using principally
     the average cost method.

4.   PROPERTY AND EQUIPMENT

     Property and  equipment are recorded at  historical  cost.  These costs are
     depreciated over the estimated useful lives, generally two (2) to seven (7)
     years, of the individual assets using the straight-line  method.  Gains and
     losses from the  disposition  of property  and  equipment  are  included in
     operations as incurred.

     In accordance  with  Statement of Financial  Accounting  Standards No. 144,
     "Accounting  for the  Impairment  or Disposal of  Long-Lived  Assets",  the
     Company  follows the policy of evaluating  all property and equipment as of
     the end of each reporting quarter. For each of the respective six and three
     month periods  ended July 31, 2006 and 2005, no charges to operations  were
     made for  impairments in the future benefit or  recoverability  of property
     and equipment.

5.   INCOME TAXES

     The Company uses the asset and liability  method of  accounting  for income
     taxes.  At July 31, 2006 and 2005,  the deferred tax asset and deferred tax
     liability accounts,  as recorded when material to the financial statements,
     are  entirely the result of temporary  differences.  Temporary  differences
     represent  differences in the recognition of assets and liabilities for tax
     and financial reporting purposes,  primarily  accumulated  depreciation and
     amortization, allowance for doubtful accounts and vacation accruals.

     As of July 31,  2006 and  2005,  the  deferred  tax  asset  related  to the
     Company's net operating loss carryforward is fully reserved.

6.   ADVERTISING COSTS

     The Company does not conduct any direct  response  advertising  activities.
     For non-direct response advertising, the Company charges the costs of these
     efforts  to  operations  at the  first  time  the  related  advertising  is
     published.

                                       8
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE D - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

7.   EARNINGS (LOSS) PER SHARE

     Basic  earnings  (loss) per share is computed  by  dividing  the net income
     (loss) available to common shareholders by the  weighted-average  number of
     common shares  outstanding  during the respective  period  presented in our
     accompanying financial statements.

     Fully diluted earnings (loss) per share is computed similar to basic income
     (loss) per share  except that the  denominator  is increased to include the
     number of common  stock  equivalents  (primarily  outstanding  options  and
     warrants).

     Common  stock  equivalents  represent  the  dilutive  effect of the assumed
     exercise of the outstanding stock options and warrants,  using the treasury
     stock method, at either the beginning of the respective period presented or
     the date of  issuance,  whichever  is later,  and only if the common  stock
     equivalents  are  considered  dilutive  based upon the Company's net income
     (loss) position at the calculation date.

     As of July  31,  2006  and  2005,  the  Company's  issued  and  outstanding
     warrants,  options and convertible debt are considered  antidilutive due to
     the Company's net operating loss position.

8.   EMPLOYEE STOCK OPTIONS

     For periods  prior to November  1, 2002,  the Company  chose to account for
     employee   stock-based   compensation  using  the  intrinsic  value  method
     prescribed  in  Accounting  Principles  Board  Opinion No. 25 (APB No. 25),
     Accounting  for Stock  Issued to  Employees,  and related  interpretations.
     Accordingly,  employee  compensation cost for stock options and warrants is
     measured as the excess,  if any, of the market price of the Company's stock
     at the date of the grant  over the amount an  employee  must pay to acquire
     the  stock.  This  treatment  was  allowed  under  Statement  of  Financial
     Accounting  Standards No. 123,  "Accounting  for Stock Based  Compensation"
     (SFAS 123).

     In December 2002, FASB issued Statement of Financial  Accounting  Standards
     No.  148  "Accounting   for  Stock-Based   Compensation  -  Transition  and
     Disclosure"  (SFAS  148).  This  statement  amends  SFAS  123 and  provides
     alternative  methods of transition for a voluntary change to the fair value
     based method of accounting  for  stock-based  employee  compensation.  This
     statement  also amends the disclosure  requirements  of SFAS 123 to require
     more prominent and frequent  disclosures in financial  statements about the
     effects of stock-based  compensation.  The  transition  guidance and annual
     disclosure  provisions of SFAS 148 are  effective for financial  statements
     issued for fiscal years ending after December 15, 2002.  Effective November
     1, 2003,  the first day of the  reporting  quarter  including the effective
     date of SFAS 148, the Company's  Board of Directors,  in  conjunction  with
     public  opinion and SFAS 148,  elected to expense the imputed  compensation
     cost related to any stock options granted during Fiscal 2003 and for future
     periods. The Company has not issued any stock options since the adoption of
     SFAS 148 and has not  experienced  a  material  impact  on our  results  of
     operations or financial condition.

9.   NEW AND PENDING ACCOUNTING PRONOUNCEMENTS

     In March 2005, the FASB issued FASB  Interpretation No. 47, "Accounting for
     Conditional   Asset   Retirement   Obligations"("FIN   47"),  which  is  an
     interpretation of SFAS 143, "Accounting for Asset Retirement  Obligations."
     FIN 47  clarifies  terminology  within  SFAS 143 and  requires  an entry to
     recognize a liability for the fair value of a conditional  asset retirement
     obligation  when incurred if the  liability's  fair value can be reasonably
     estimated.  FIN 47 is effective for fiscal years ending after  December 15,
     2005.  The Company does not expect the adoption of this statement to have a
     material impact on its financial statements.

                                       9
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE D - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

9.   NEW AND PENDING ACCOUNTING PRONOUNCEMENTS - continued

     In June 2005, the FASB issued SFAS No. 154,  "Accounting  Changes and Error
     Corrections," which will require entities that voluntarily make a change in
     accounting  principle to apply that change  retroactively to prior periods'
     financial  statements  unless  this  would be  impracticable.  SFAS No. 154
     supersedes Accounting Principles Board Opinion No. 20, "Accounting Changes"
     ("APB No. 20"),  which previously  required that most voluntary  changes in
     accounting principle be recognized by including in the current period's net
     income the cumulative  effect of changing to the new accounting  principle.
     SFAS No. 154 also makes a distinction between  "retrospective  application"
     of an accounting principle and the "restatement" of financial statements to
     reflect the correction of an error.  Another significant change in practice
     under  SFAS  No.  154  will be that if an  entity  changes  its  method  of
     depreciation,  amortization,  or depletion  for  long-lived,  non-financial
     assets,  the  change  must  be  accounted  for as a  change  in  accounting
     principle. SFAS No. 154 applies to accounting changes and error corrections
     that are made in fiscal  years  beginning  after  December  15,  2005.  The
     provisions  of SFAS  No.  154 are not  expected  to  affect  the  Company's
     consolidated financial statements.

NOTE E - FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amount of cash,  accounts  receivable,  accounts  payable and notes
payable, as applicable,  approximates fair value due to the short term nature of
these items  and/or the current  interest  rates  payable in relation to current
market conditions.

Interest  rate risk is the risk  that the  Company's  earnings  are  subject  to
fluctuations  in interest  rates on either  investments  or on debt and is fully
dependent  upon  the  volatility  of  these  rates.  The  Company  does  not use
derivative instruments to moderate its exposure to interest rate risk, if any.

Financial  risk  is  the  risk  that  the  Company's  earnings  are  subject  to
fluctuations in interest rates or foreign exchange rates and are fully dependent
upon the  volatility  of  these  rates.  The  company  does  not use  derivative
instruments to moderate its exposure to financial risk, if any.

NOTE F - CONCENTRATIONS OF CREDIT RISK

KTII and KTI maintain their  respective cash accounts in financial  institutions
subject  to  insurance   coverage  issued  by  the  Federal  Deposit   Insurance
Corporation  (FDIC).  Under  FDIC  rules,  both  KTII  and KTI are  entitled  to
aggregate  coverage of $100,000 per account  type per separate  legal entity per
financial  institution.  During the years ended  January 31, 2006 and 2005,  and
through the quarter  ended July 31, 2006,  respectively,  the various  entities,
from  time-to-time,  had  deposits in a financial  institution  with credit risk
exposures  in excess of  statutory  FDIC  coverage.  The Company has incurred no
losses during Fiscal 2006 and 2005, and subsequent  thereto,  as a result of any
unsecured situations.

NOTE G - INVENTORIES

Inventories consist of the following at July 31, 2006 and 2005:

                                             July 31,              July 31,
                                               2006                  2005
                                             --------              --------
     Raw materials                           $ 32,125              $ 68,852
     Finished goods                           164,430               255,938
                                             --------              --------

     Total                                   $196,555              $324,790
                                             ========              ========

                                       10
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE H - PROPERTY AND EQUIPMENT

Property and equipment consists of the following at July 31, 2006 and 2005:

                                       July 31,       July 31,
                                        2006           2005       Estimated life
                                      ---------      ---------    --------------
     Machinery and Equipment          $ 605,921      $ 600,121       7 years
     Office furniture and fixtures       12,138         25,441       5 years
     Leasehold improvements              18,029         14,180       2 years
     Vehicles                             9,279          9,279       5 years
                                      ---------      ---------
                                        645,367        649,021
     Less accumulated depreciation     (549,731)      (532,991)
                                      ---------      ---------

     Net property and equipment       $  95,636      $ 116,030
                                      =========      =========

Depreciation  expense  for the six  months  ended  July  31,  2006  and 2005 was
approximately $15,251 and $15,490, respectively.

NOTE I - FUNDS HELD IN TRUST BY OFFICER

In May 2001, the Company advanced $53,400 to its President to hold in trust as a
contingency fund for the sole use of the Company in the event of a unanticipated
cash  shortfall.  The advance bears  interest at 4.0% annually and is unsecured.
The original  documentation  required repayment of the advance and accrued,  but
unpaid,  interest in May 2003. As of July 31, 2006, and  subsequently,  with the
approval of the Company's Board of Directors,  the Company's President continues
to maintain these funds as trustee on behalf of the Company.

NOTE J - NOTES PAYABLE TO INVESTORS

Pursuant to the terms of a private placement agreement, the Company attempted to
raise up to $600,000  through the  placement of two-year  senior  notes  bearing
interest  at 10%  payable  quarterly.  This  Private  Placement  Memorandum  was
terminated by the Company during the fiscal quarter ended October 31, 2002.

In November  2001,  the Company  entered  into an agreement  with an  investment
banker whereby the investment  banker would act as exclusive  dealer-manager  in
this private  placement of  securities  to be issued by the Company  pursuant to
Regulation D of the Securities  Act of 1933, as amended.  As  compensation,  the
investment banker was paid $15,000 for professional fees,  received a commission
equal to 10% of the gross proceeds,  an unaccountable expense allowance equal to
4% of the gross proceeds,  and for every $500,000 raised,  150,000 shares of the
Company's restricted, unregistered common stock. Such shares will be issued upon
completion of the private  placement.  In addition,  the investment  banker will
have the option to nominate one person to the Company's Board of Directors if at
least  $2,000,000 is raised.  As of the  termination  of this Private  Placement
Memorandum, in prior years, only $75,000 was raised.

Note  holders can elect,  with the  consent of the  Company,  to accept  Company
common stock in lieu of cash interest payments.  Such payments in stock would be
calculated  at 50% of the daily  average of the market price of the common stock
for the 30-calendar  days preceding the interest due date. After six months from
the date of issue of the notes,  the  Company  can  convert  the notes to common
stock if the daily average  market price of the  Company's  common stock for any
30-calendar days after the initial six-month period equals or exceeds $1.00. The
conversion  of the notes to common stock would also be  calculated at 50% of the
daily average market price for the 30 days prior to the Company giving notice of
its plan to convert.

In  conjunction  with the offering of the notes,  each note holder was given one
warrant for each $1.00 invested.  Each warrant allows the holder to purchase one
share of the Company's  common stock at an initial  exercise  price of $0.60 per
share, and is exercisable for two years. In March 2002, the Company repriced the
outstanding warrants to an exercise price of $0.40 per share.

                                       11
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE J - NOTES PAYABLE TO INVESTORS - CONTINUED

Pursuant to the private placement,  the Company sold a $50,000  convertible note
on November 12, 2001 and a $25,000  convertible note on December 26, 2001 to two
unrelated  investors.  Warrants to purchase a combined total of 75,000 shares of
the Company's common stock at $0.60 per share were also issued to the investors.
The  warrants  were  valued at $11,789  using the  Black-Scholes  option-pricing
model, and therefore $11,789 of the total debt proceeds of $75,000 was allocated
to the warrants, resulting in a discount on the notes, was amortized to interest
expense over the initial term of the underlying  debt. This calculated  discount
was  amortized  to  interest  expense  in  prior  years.  The  weighted  average
assumptions   utilized   to  value  the   warrants   using   the   Black-Scholes
option-pricing model were as follows:

Expected life of the option:    The  initial life of  the  corresponding option,
                                generally two (2) years
Expected volatility in
 the Company's stock price:     150.0%,  which was based on fluctuations of the
                                Company's stock price over the past Fiscal year.
Expected dividends:             Zero (0.00) based on past performance.
Anticipated risk free
 interest rate:                 Estimated to be 2.80%.

The  convertible  notes  contained a beneficial  conversion  feature valued at a
combined  total  of  approximately  $63,000.  However,  because  the  conversion
features were fully contingent upon the occurrence of certain future events, the
Company  did not  record a discount  resulting  from the  beneficial  conversion
feature.

The notes  matured  on  November  12,  2003  ($50,000)  and  December  26,  2003
($25,000), respectively.

On February 16, 2004, the Company  restructured  the $50,000  convertible  note.
Under the restructured terms, the Company paid all accrued interest and a $3,000
principal  reduction on March 16, 2004, as of February 16, 2004.  The Company is
obligated to pay $2,000 per month,  plus accrued  interest,  for the period from
March 16,  2004  through  August 16,  2004 and $1,000  per month,  plus  accrued
interest, on the 16th of each month thereafter until all outstanding amounts are
paid in full.  The  restructured  note bears  interest  at 10.0% per annum.  The
Company is making  interest-only  payments of approximately  $314, which is less
than the interest  accruing and is delinquent  in making the required  principal
payments.  Accordingly,  the  entire  debt is  classified  as  "current"  in the
accompanying consolidated financial statements.

The  $50,000  restructured  note is  convertible  into  shares of  unregistered,
restricted  common stock at the discretion of the Noteholder  with the Company's
consent,  provided that the daily average  (calculated  from the last sale price
daily) of the market price of the Company's common stock for any 30 calendar day
period equals or exceeds $1.00 per share,  with the conversion  being calculated
at a 50% discount of such 30 day average.

The $50,000  Noteholder  also has the  election to receive the monthly  interest
payments in  restricted,  unregistered  common stock of the Company at the daily
average  (calculated  from the last sale price daily) of the market price of the
Company's  common stock for the 30 calendar day period prior to the interest due
date,  with the number of shares to be issued  calculated  at a 50%  discount of
such 30 day average.

The  $25,000  convertible  note is in default and no demand for payment has been
made  to  the  Company.  The  Company  continues  to  accrue  interest  on  this
convertible note in accordance with the original terms and conditions.

The aggregate maturities of the notes are as follows:

     Balance as of July 31, 2006                                  $ 68,000
     Less current portion                                          (68,000)
                                                                  --------

     Long-term portion                                            $     --
                                                                  ========

                                       12
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE K - CAPITAL LEASE PAYABLE

Capital lease payable is as follows:

                                                          July 31,      July 31,
                                                            2006          2005
                                                          -------       -------
$21,080 capital lease payable to a finance corporation
 Interest at 8.60%.  Payable in monthly installments
 of approximately $432, including accrued interest
 Final maturity due in April 2007.  Collateralized by
 equipment                                                $ 2,934       $ 8,106

   Less current maturities                                 (2,934)       (3,439)
                                                          -------       -------

   Long-term portion                                      $    --       $ 4,667
                                                          =======       =======

Future maturities of long-term capital leases payable are:

                                                       Year ending
                                                       January 31,      Amount
                                                       -----------      ------
                                                          2007          $2,509
                                                          2008             425
                                                                        ------

                                                          Total         $2,934
                                                                        ======

NOTE L - INCOME TAXES

The components of income tax (benefit) expense for the six months ended July 31,
2006 and 2005, respectively, are as follows:

                                              July 31,              July 31,
                                                2006                  2005
                                              -------               -------
     Federal:
       Current                                $    --               $    --
       Deferred                                    --                    --
                                              -------               -------
                                                   --                    --
                                              -------               -------
     State:
       Current                                     --                    --
       Deferred                                    --                    --
                                              -------               -------
                                                   --                    --
                                              -------               -------
       Total                                  $    --               $    --
                                              =======               =======

The Company has a net operating loss carryforward of approximately $5,200,000 to
offset future taxable income. Subject to current regulations, components of this
cumulative  carryforward  will at the end of each fiscal year through 2026.  The
amount and availability of the net operating loss  carryforwards  may be subject
to  limitations  set forth by the  Internal  Revenue  Code.  Factors such as the
number of shares ultimately issued within a three year look-back period; whether
there is a deemed  more  than 50  percent  change  in  control;  the  applicable
long-term  tax  exempt  bond  rate;  continuity  of  historical  business;   and
subsequent  income of the  Company  all enter  into the  annual  computation  of
allowable annual utilization of the carryforwards.

The  Company's  income tax  expense  for the six months  ended July 31, 2006 and
2005, respectively, are as follows:

                                                        July 31,       July 31,
                                                          2006           2005
                                                        --------       --------
Statutory rate applied to loss before income taxes      $(32,200)      $(49,300)
Increase (decrease) in income taxes resulting from:
  State income taxes                                          --             --
  Other, including reserve for deferred tax asset         32,200         49,300
                                                        --------       --------
    Income tax expense                                  $     --       $     --
                                                        ========       ========

                                       13
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE L - INCOME TAXES - CONTINUED

Temporary differences due to statutory requirements in the recognition of assets
and liabilities for tax and financial  reporting  purposes,  generally including
such items as organizational costs,  accumulated  depreciation and amortization,
allowance for doubtful accounts,  organizational and start-up costs and vacation
accruals.  These  differences  give  rise to the  financial  statement  carrying
amounts and tax bases of assets and  liabilities  causing  either  deferred  tax
assets or liabilities, as necessary, as of July 31, 2006 and 2005, respectively:

                                                    July 31,          July 31,
                                                     2006              2005
                                                  -----------       -----------
     Deferred tax assets
       Net operating loss carryforwards           $ 1,768,000       $ 1,700,000
       Less valuation allowance                    (1,768,000)       (1,700,000)
                                                  -----------       -----------

     Net Deferred Tax Asset                       $        --       $        --
                                                  ===========       ===========

During the six months ended July 31, 2006 and 2005, respectively,  the valuation
allowance for the deferred tax asset increased nominally.

NOTE M - COMMON STOCK TRANSACTIONS

In July 2004,  the Company  issued 150,000  restricted,  unregistered  shares of
common  stock  in  payment  of  a  contract  for  professional  services.   This
transaction was valued at approximately  $6,000, which was equal to or in excess
of the  discounted  closing  price of the  Company's  common stock on the NASDAQ
Electronic  Bulletin  Board on the date of the  transaction.  The Company relied
upon Section 4(2) of The  Securities  Act of 1933, as amended,  for an exemption
from registration on these shares.

In July 2006,  the Company  issued 150,000  restricted,  unregistered  shares of
common  stock  in  payment  of  a  contract  for  professional  services.   This
transaction was valued at approximately  $6,000, which was equal to or in excess
of the closing  price of the  Company's  common  stock on the NASDAQ  Electronic
Bulletin Board on the date of the  transaction.  The Company relied upon Section
4(2)  of  The  Securities  Act of  1933,  as  amended,  for  an  exemption  from
registration on these shares.

NOTE N - STOCK WARRANTS

At  January  31,  2004,  the  75,000  warrants  sold  in  conjunction  with  the
convertible notes private placement had expired.

In conjunction  with the reverse  acquisition,  which was concluded in September
2001, The Company granted  2,300,000  warrants to certain  shareholders of KTTI.
These  warrants  have an  exercise  price of  approximately  $0.05 per share and
expired in April 2004.

The following table lists the issued and  outstanding  stock warrants as of July
31, 2006 and 2005, respectively:

                                              Warrants
                                               issued        Exercise price
                                               ------        --------------
     Balance at January 31, 2005                  --
        Granted                                   --
        Exercised                                 --
        Forfeited/Expired                         --
                                               -----
     Balance at January 31, 2006                  --
        Granted                                   --
        Exercised                                 --
        Forfeited/Expired                         --
                                               -----
     Balance at July 31, 2006                     --
                                               =====

                                       14
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE O - RELATED PARTY TRANSACTIONS

During  each of the  years  ended  January  31,  2006 and 2005  and  during  the
period(s)  ended  July 31,  2006 and 2005,  respectively,  the  Company  accrued
approximately  $120,000  annually  or  approximately  $30,000  per  quarter  for
administrative service fees payable to KTTI.

During Fiscal 2006, KTTI advanced KTI $50,000 for working capital purposes. This
advance is non-interest bearing and has no scheduled repayment date.

During the first quarter of Fiscal 2007, KTTI advanced KTI an additional $50,000
for working capital  purposes.  This advance is non-interest  bearing and has no
scheduled repayment date.

NOTE P - COMMITMENTS AND CONTINGENCIES

LEASED FACILITIES

The Company leases its facilities under a non-cancellable operating lease, which
expires in May 2008. The lease requires monthly payments as follows:  $8,307 for
the first 12  months;  $8,639  for the next 12 months and $8,984 for the next 12
months.  Rent expense incurred under this lease was  approximately  $108,597 and
$106,428 for each of the years ended January 31, 2006 and 2005 and approximately
$54,622 and $54,693  for each of the six month  periods  ended July 31, 2006 and
2005, respectively.

Future amounts due under this agreement are as follows:

                                                 Year ending
                                                 January 31,        Amount
                                                 -----------        ------
                                                    2007           $110,680
                                                    2008            105,391
                                                    2009             48,585
                                                                   --------

                                                   Totals          $264,656
                                                                   ========

EMPLOYMENT CONTRACT

KIK entered  into an  employment  agreement  with  William M.  Knooihuizen,  the
Company's current President and Director.  The agreement started in May 2000 and
was for an initial period of five (5) years at an annual salary in the amount of
$143,000,  to be paid weekly.  Upon expiration in May 2005, the Company and it's
officer  agreed to continue this agreement in an unwritten form on an undefined,
indefinite basis.

NOTE Q - SIGNIFICANT CUSTOMERS

During the years ended January 31, 2006 and 2005, respectively,  the Company had
four and three separate customers who were responsible for a significant portion
of the Company's net revenues,  accounts receivable and suppliers of various raw
materials and components to the Company's  manufacturing  process. The following
table shows the significance of these entities:

                                                    Accounts          Accounts
                                  Revenues         Receivable          Payable
                                  --------         ----------          -------
Year ended January 31, 2006
Customer A                          28.98%            10.74%            48.05%
Customer B                          25.73              3.48                --
Customer C                           5.62             15.36              0.06
Customer D                           6.28             11.08                --
Others                              33.39             59.34             51.89
                                   ------            ------            ------

  Totals                           100.00%           100.00%           100.00%
                                   ======            ======            ======

                                       15
<PAGE>
                KIK TECHNOLOGY INTERNATIONAL, INC. AND SUBSIDIARY

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE Q - SIGNIFICANT CUSTOMERS - CONTINUED

Year ended January 31, 2005
   Customer A                       49.18%            35.02%            59.37%
   Customer B                       16.09              7.42              0.12
   Customer C                        6.59             18.32              0.52
   Others                           28.14             39.24             39.99
                                   ------            ------            ------

     Totals                        100.00%           100.00%           100.00%
                                   ======            ======            ======

NOTE R - SELECTED FINANCIAL DATA (UNAUDITED)

The following is a summary of the quarterly  results of operations  for the year
ending  January 31, 2007 and each of the years ended  January 31, 2006 and 2005,
respectively.

<TABLE>
<CAPTION>
                                   Quarter ended    Quarter ended     Quarter ended    Quarter ended      Year ended
                                     April 30,         July 31,        October 31,       January 31,      January 31,
                                     ---------         --------        -----------       -----------      -----------
<S>                                <C>               <C>               <C>              <C>              <C>
YEAR ENDING JANUARY 31, 2007
  Sales                            $   596,844       $   578,076
  Gross profit                         143,541            69,814
  Net earnings after
   provision for
   income taxes                         (8,429)          (86,327)
  Basic and fully diluted
   earnings per share                      nil               nil
  Weighted average
   number of shares
   issued and outstanding           25,171,865        25,173,495


YEAR ENDED JANUARY 31, 2006
  Sales                            $   375,216       $   541,296       $   560,849      $   469,708      $ 1,947,069
  Gross profit                             577           147,853            40,488           29,097          218,015
  Net earnings after
   provision for
   income taxes                       (148,144)            3,207          (105,991)        (130,359)        (381,287)
  Basic and fully diluted
   earnings per share              $     (0.01)              nil               nil              nil      $     (0.01)
  Weighted average
   number of shares
   issued and outstanding           25,171,865        25,171,865        25,171,865       25,171,865       25,171,865

YEAR ENDED JANUARY 31, 2005
  Sales                            $   791,111       $   511,720       $   704,469      $   455,677      $ 2,462,977
  Gross profit                         107,642            14,866           119,193          (19,671)         222,030
  Net earnings after
   provision for
   income taxes                        (56,101)         (142,464)          (32,265)        (203,886)        (434,716)
  Basic and fully diluted
   earnings per share                      nil       $     (0.01)              nil      $     (0.01)     $     (0.02)
  Weighted average
   number of shares
   issued and outstanding           25,021,865        25,038,169        25,171,865       25,171,865       25,101,375
</TABLE>

                                       16
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

(1) CAUTION REGARDING FORWARD-LOOKING INFORMATION

Certain  statements  contained  in this  quarterly  filing,  including,  without
limitation, statements containing the words "believes", "anticipates", "expects"
and  words  of  similar  import,  constitute  forward-looking  statements.  Such
forward-looking  statements  involve known and unknown risks,  uncertainties and
other factors that may cause the actual results,  performance or achievements of
the Company,  or industry  results,  to be materially  different from any future
results,   performance   or   achievements   expressed   or   implied   by  such
forward-looking statements.

Such factors include, among others, the following:  international,  national and
local general economic and market conditions:  demographic  changes; the ability
of the Company to sustain,  manage or  forecast  its growth;  the ability of the
Company to successfully make and integrate acquisitions;  raw material costs and
availability;  new product  development and  introduction;  existing  government
regulations  and  changes  in,  or  the  failure  to  comply  with,   government
regulations;  adverse publicity;  competition; the loss of significant customers
or suppliers;  fluctuations  and  difficulty in forecasting  operating  results;
changes in business strategy or development  plans;  business  disruptions;  the
ability  to attract  and  retain  qualified  personnel;  the  ability to protect
technology; and other factors referenced in this and previous filings.

Given  these  uncertainties,  readers  of this Form  10-QSB  and  investors  are
cautioned not to place undue reliance on such  forward-looking  statements.  The
Company  disclaims  any  obligation  to update any such  factors or to  publicly
announce the result of any  revisions to any of the  forward-looking  statements
contained herein to reflect future events or developments.

(2) RESULTS OF OPERATIONS, LIQUIDITY AND CAPITAL RESOURCES OR PLAN OF OPERATION

OVERVIEW

During the  quarter  ended July 31,  2006 and 2005,  respectively,  the  Company
achieved  revenues of approximately  $578,000 and $541,000.  These revenues were
derived  primarily  from the sale of tire  products.  Net income  (loss) for the
three  months  ended  July 31,  2006 and 2005 was  approximately  $(86,300)  and
$3,200,  respectively.  The results  from  operations  for each of the  quarters
includes a $30,000  charge for  administrative  services to the Company from KIK
Tire  Technologies   Inc.,  the  Company's   publicly-owned   Canadian  majority
shareholder.  The net loss per share of common  stock for the three months ended
July 31, 2006 and 2005, respectively, was approximately $0.00 and $0.00.

RESULTS OF OPERATIONS

The following  discussion and analysis of our financial condition and results of
operations  should  be read  in  conjunction  with  the  consolidated  financial
statements and notes.

SIX MONTHS ENDED JULY 31, 2006 COMPARED TO THE SIX MONTHS ENDED JULY 31, 2005

The  Company  posted net sales of  approximately  $1,175,000  for the six months
ended July 31, 2006 as compared to net sales of  approximately  $917,000 for the
six months ended July 31, 2005.

The Company's cost of sales increased by approximately $194,000 to approximately
$962,000  for the six months  ended July 31, 2006 as  compared to  approximately
$768,000  for the six  months  ended  July  31,  2005.  This  increase  reflects
increases in raw  materials  which are  dependent on crude oil prices and supply
throughout the world. The Company continues to experience price increases in key
raw materials  which cannot be passed through in the form of price increases for
the  Company's  urethane  tire  products in their  entirety  due to  competitive
pressures  from  comparable  products  produced  in Asian  markets.  Except  for
increases in energy costs,  all other costs related to production  have remained
relatively  stable  from the end of Fiscal 2005  through  the second  quarter of
Fiscal 2007. In spite of competitive pressures and difficulties in obtaining raw
feedstock  materials as a result of the effects of Hurricane Katrina and Rita on
refineries  located  on the U. S.  Gulf  Coast,  the  Company  managed  a slight
increase in it's gross  profit  margin for the six months ended July 31, 2006 as
compared to the six months ended July 31, 2005;  2006-approximately  $213,000 or
approximately   18.16%  as  compared  to  2005  -   approximately   $148,000  or
approximately  16.20%.  The three  months  ended  July 31,  2006  experienced  a
significant  decline in gross  profit and gross profit  margin of  approximately
$70,000 (12.08%) from the comparable period ended July 31, 2005 of approximately
$148,000  (27.31%).  These  results are directly  related to the  aforementioned
pressures of increased raw material costs and the effect of foreign  competition
on  market  prices  of  comparable  products  being  introduced  into  the U. S.
marketplace.

While the Company  continues to experience  economic pricing pressures caused by
foreign  competition  and  increases in domestic raw material  costs,  which are
directly related to the cost of crude oil from both foreign and domestic market,

                                       17
<PAGE>
management is aware of this  situation and continues to evaluate all  productive
alternatives to restore the gross profit percentages experienced in prior years.

General and  administrative  expenses  increased  nominally  from  approximately
$290,000  for the six months ended July 31, 2005 to  approximately  $307,000 for
the six months ended July 31, 2006. To the extent possible,  management monitors
and controls the variable expenditures related to the Company's  administration.
Included  in  these  costs  is  a  $10,000  per  month   ($30,000  per  quarter)
administrative   charge   to  KIK  Tire   Technologies   Inc.,   the   Company's
publicly-owned Canadian majority shareholder.

LIQUIDITY AND CAPITAL RESOURCES

The Company had cash and cash equivalents of approximately $27,700,  $10,200 and
$27,700 at July 31, 2006, January 31, 2006 and July 31, 2005, respectively.  The
Company  maintained  business  liquidity and capital  resources  during the year
adequate to fund all capital and operating expense requirements. Operations were
primarily funded from internally generated funds, line of credit borrowings, and
capital raised via a private  placement of securities in previous years.  During
the 4th quarter of Fiscal 2006 (ended  January 31,  2006) and the 1st quarter of
Fiscal 2007 (ended April 30, 2006), the Company  received two separate  advances
of $50,000  each from it's  parent  company to support  operations  and  provide
additional working capital.

For the six months ended July 31, 2006 and 2005,  net cash provided by (used in)
operating  activities was approximately  $(23,000) and $(28,000),  respectively.
Net cash provided by operating  activities  consists of cash received from sales
of products to customers,  less purchases of raw  materials,  payment of payroll
and payment of other general operating expenses, including interest.

Cash used in investing  activities was  approximately  $(7,000) and $(2,400) for
each of the six month periods ended July 31, 2006 and 2005, respectively.  These
cash  utilizations  was due solely to the  acquisition  of equipment used in the
manufacturing process.

The Company  experienced  cash derived from (used in)  financing  activities  of
approximately  $48,000  and  $(2,200) in the first six months of Fiscal 2007 and
Fiscal 2006,  respectively.  These  expenditures  are related to payments on the
Company's  capital  lease  financing  obligation.  The Company  also  received a
$50,000 cash advance  during the first quarter of Fiscal 2007 from it's majority
shareholder to provide additional working capital.

Management  remains confident that sufficient cash will be generated  internally
to fund its operations for the next twelve months.

CRITICAL ACCOUNTING POLICIES

Financial  Reporting  Release  No.  60,  of the U. S.  Securities  and  Exchange
Commission,   requires  all  companies  to  include  a  discussion  of  critical
accounting policies or methods used in the preparation of financial  statements.
Note D to the Company's  Consolidated Financial Statements includes a summary of
the significant  accounting  policies and methods used in the preparation of the
Company's Consolidated Financial Statements. The following is a brief discussion
of the more significant accounting policies and methods used by the Company.

     REVENUE RECOGNITION

     The Company  recognizes revenue from the sale of tires and accessories upon
     shipment to, or receipt by customers,  depending upon contractual terms and
     when there is no significant  uncertainty regarding the consideration to be
     received and the associated costs to be incurred. Additionally, the Company
     recognizes   reductions  of  recorded  revenue  for  product  returns  from
     unsatisfied customers and other billing adjustments or corrections,  at the
     point that the  returned  products  are received by the Company or upon the
     completion of negotiations between the Company and it's customer.

     ACCOUNTS RECEIVABLE

     The  Company  continuously  monitors  collections  and  payments  from  its
     customers and maintains an allowance for estimated  uncollectible  accounts
     based upon historical  experience and specific customer  collections issues
     that have been  identified.  Depending  upon  management's  assessment of a
     customer's  creditworthiness  and order size, certain shipments are made on
     "COD" terms using common carriers.

     In the normal course of business,  the Company extends  unsecured credit to
     virtually  all of its  customers  which are located  throughout  the United
     States  and are  principally  concentrated  in the  midwest  region  of the
     country.  Depending upon management's  assessment of  creditworthiness  and
     order  size,  certain  shipments  are  made on  "COD"  terms  using  common
     carriers.  Because of the credit risk involved,  management has provided an

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     allowance for doubtful accounts which reflects its opinion of amounts which
     will   eventually   become   uncollectible.   In  the  event  of   complete
     non-performance, the maximum exposure to the Company is the recorded amount
     of trade  accounts  receivable  shown on the  balance  sheet at the date of
     non-performance.

     INVENTORIES

     Inventories  are valued at the lower of cost or market.  Cost is determined
     principally  on the average  cost  method.  The Company  regularly  reviews
     inventory quantities on hand and records,  when necessary,  a provision for
     excess and obsolete  inventory based  primarily on the Company's  estimated
     forecast of product demand and production  requirements for the next twelve
     months.  Demand for the Company's products can fluctuate  significantly.  A
     significant  increase in the demand for the Company's products could result
     in a  short-term  increase  in the  cost  of  inventory  purchases  while a
     significant decrease in demand could result in an increase in the amount of
     excess inventory quantities on hand. In addition, the Company's industry is
     characterized  by  rapid   technological   change,   frequent  new  product
     development and rapid product obsolescence that could result in an increase
     in the amount of obsolete inventory quantities on hand.  Additionally,  the
     Company's estimate of future product demand may prove to be inaccurate,  in
     which case the Company may have  understated  or  overstated  the provision
     required for excess and obsolete inventory. Therefore, although the Company
     makes  every  effort to ensure  the  accuracy  of its  forecasts  of future
     product  demand,  any  significant   unanticipated  changes  in  demand  or
     technological developments could have a significant impact on the Company's
     inventory value and reported operating results.

     STOCK-BASED COMPENSATION

     Statement of Financial  Accounting  Standards No. 123, Accounting for Stock
     Based  Compensation,  defines a fair-value  based method of accounting  for
     stock-based employee compensation plans and transactions in which an entity
     issues  its  equity   instruments   to  acquire  goods  and  services  from
     non-employees,  and  encourages  but does not require  companies  to record
     compensation  cost  for  stock-based  employee  compensation  plans at fair
     value.

     For periods  prior to  November 1, 2002,  the Company has chosen to account
     for employee  stock-based  compensation  using the  intrinsic  value method
     prescribed  in  Accounting  Principles  Board  Opinion No. 25 (APB No. 25),
     Accounting  for Stock  Issued to  Employees,  and related  interpretations.
     Accordingly,  employee  compensation cost for stock options and warrants is
     measured as the excess,  if any, of the market price of the Company's stock
     at the date of the grant  over the amount an  employee  must pay to acquire
     the  stock.  This  treatment  was  allowed  under  Statement  of  Financial
     Accounting  Standards No. 123,  "Accounting  for Stock Based  Compensation"
     (SFAS 123).

     In December 2002, FASB issued Statement of Financial  Accounting  Standards
     No.  148  "Accounting   for  Stock-Based   Compensation  -  Transition  and
     Disclosure"  (SFAS  148).  This  statement  amends  SFAS  123 and  provides
     alternative  methods of transition for a voluntary change to the fair value
     based method of accounting  for  stock-based  employee  compensation.  This
     statement  also amends the disclosure  requirements  of SFAS 123 to require
     more prominent and frequent  disclosures in financial  statements about the
     effects of stock-based  compensation.  The  transition  guidance and annual
     disclosure  provisions of SFAS 148 are  effective for financial  statements
     issued for fiscal years ending after December 15, 2002.  Effective November
     1, 2003,  the first day of the  reporting  quarter  including the effective
     date of SFAS 148, the Company's  Board of Directors,  in  conjunction  with
     public  opinion and SFAS 148,  elected to expense the imputed  compensation
     cost related to any stock options granted during Fiscal 2003 and for future
     periods. The Company has not issued any stock options since the adoption of
     SFAS 148 and has not  experienced  a  material  impact  on our  results  of
     operations or financial condition.

     In December 2004, the FASB issued SFAS 123(R),  "Share-Based Payment." SFAS
     123(R) amends SFAS 123, "Accounting for Stock-Based  Compensation," and APB
     Opinion  25,  "Accounting  for Stock  Issued  to  Employees."  SFAS  123(R)
     requires that the cost of share-based payment transactions (including those
     with   employees  and   non-employees)   be  recognized  in  the  financial
     statements.  SFAS 123(R) applies to all share-based payment transactions in
     which an entity  acquires  goods or  services  by issuing  (or  offering to
     issue) its shares,  share options,  or other equity instruments (except for
     those held by an ESOP) or by  incurring  liabilities  (1) in amounts  based
     (even  in  part)  on the  price of the  entity's  shares  or  other  equity
     instruments,  or (2)  that  require  (or  may  require)  settlement  by the
     issuance of an entity's shares or other equity instruments.  This statement
     is effective  (1) for public  companies  qualifying  as SEC small  business
     issuers,  as of the first  interim  period or fiscal year  beginning  after
     December 15, 2005, or (2) for all other public  companies,  as of the first
     interim period or fiscal year beginning after June 15, 2005, or (3) for all
     nonpublic  entities,  as of the first fiscal year beginning  after December
     15,  2005.  There  was no  significant  impact to the  Company's  financial
     statements upon the adoption of SFAS No. 123(R).

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<PAGE>
ITEM 8A - CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Under the supervision and with the  participation  of our management,  including
our principal executive officer and principal financial officer, we conducted an
evaluation of our disclosure  controls and  procedures,  as such term is defined
under Rule 13a-15(e)  promulgated under the Securities  Exchange Act of 1934, as
amended  (Exchange  Act),  as of July 31, 2006.  Based on this  evaluation,  our
principal  executive officer and principal  financial officer concluded that our
disclosure  controls and  procedures  are effective in alerting them on a timely
basis to material information relating to our Company required to be included in
our reports filed or submitted under the Exchange Act.

(b) Changes in Internal Controls

There were no significant  changes (including  corrective actions with regard to
significant  deficiencies or material  weaknesses) in our internal controls over
financial  reporting  that occurred  during the quarter ended July 31, 2006 that
has  materially  affected,  or is reasonably  likely to materially  affect,  our
internal control over financial reporting.

                          PART II - OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

None

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In July 2006,  the Company  issued 150,000  restricted,  unregistered  shares of
common  stock  to The  Compeller  Group,  Ltd.  in  payment  of a  contract  for
professional  services.  This  transaction was valued at  approximately  $6,000,
which was equal to or in excess of the  closing  price of the  Company's  common
stock on the NASDAQ  Electronic  Bulletin Board on the date of the  transaction.
The Company  relied upon Section 4(2) of The Securities Act of 1933, as amended,
for an exemption from registration on these shares.

ITEM 3 - DEFAULTS ON SENIOR SECURITIES

None

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The  Company  has held no  regularly  scheduled,  called or special  meetings of
shareholders during the reporting period.

ITEM 5 - OTHER INFORMATION

None

ITEM 6 - EXHIBITS

Exhibits

31.1 Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002 - Chief
     Executive Officer
31.2 Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002 - Chief
     Financial Officer
32.1 Certifications pursuant to Section 906 of Sarbanes-Oxley Act of 2002.

--------------------------------------------------------------------------------
                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                              KIK TECHNOLOGY INTERNATIONAL, INC.

Dated: August 22, 2006                        /s/ Kuldip C. Baid
       ---------------                        ----------------------------------
                                                                  Kuldip C. Baid
                                                         Chief Financial Officer
                                                                    and Director

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